DUBAI // Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has approved a budget of Dh46.1 billion for the emirate, which will create more than 3,000 jobs for Emiratis.
The amount is a 12 per cent increase on this year, and has an operating surplus of Dh3.4bn.
Abdulrahman Al Saleh, director general of the Department of Finance, said Sheikh Mohammed had wanted a focus on prudent spending to stimulate economic growth, raise the efficiency of government departments and give the best health and social care for all citizens and residents.
“Dubai managed to move beyond the budget deficit, but kept on increasing expenditure by 12 per cent for fiscal year 2015, which pushes the principality’s macroeconomic growth to be in line with the planned levels,” Mr Al Saleh said.
About Dh16.6bn is set aside for infrastructure, transport and economics – a rise of Dh1.8bn on this year – as Dubai prepares to host Expo 2020.
“Dubai is planning to maintain the size of its investments in infrastructure over the next five years,” the Government said.
Thirty-seven per cent of spending, or Dh16.9bn, will go towards health, education, housing and community development, compared with Dh14.3bn this year.
"The Government supports social services through continued support for public benefits funds to support families with children, and maternal and child welfare, disabled persons, youth and sports clubs," the Government said.
Monica Malik, chief economist at Abu Dhabi Commercial Bank, said the creation of 3,000 jobs showed that Dubai had a strong focus on social and economic development.
“The creation of jobs is positive for the growth and consumption outlook,” Ms Malik said.
The increase in the budget "shows a healthy functionary position and is a testament of the diversified nature of Dubai's economy and revenue base".
Most of the revenue, 74 per cent, is expected to come from fees and fines.
Tax, such as Customs and duties on foreign banks, represent 19 per cent.
Oil provides 6 per cent, but Ms Malik said that Dubai’s diversified sources of revenue would offset the recent drops in global prices.
“Oil accounts for a very small proportion of Dubai’s earnings and incomes, and diversification of its revenue base,” she said.
“And with a more diversified economy and stronger resource basis, we continue to see the UAE as one of the strongest in the region to withstand the low oil price environment.”
Forty-five per cent of government spending is for general and administrative expenses, capital works, and grants and subsidies, while 41 per cent will go towards goods and services.
The Government will spend 36 per cent on wages and salaries, which it said proved its keenness on investing in its people, “underscoring the desire to support recruitment and human resource support in the emirate”.
Five per cent of spending has been allocated for debt service “to continue dealing with loans seriously”.
Security, justice and safety has been allocated Dh9.6bn.
hdajani@thenational.ae
